According to analysts, the Bitcoin Sell-Side Risk Ratio has returned to a low-risk zone of nearly 1 per cent. In historical terms, this position usually corresponds to a weakening of sales pressure and a build-up of markets, but it does not mean that prices have been recognized to bottom.

Indicator returns to low-risk areas

Sell-Side Risk Ratio measures the change in the market value of the realized gains and losses relative to the realized market value, reflecting the strength of the currency holder ' s realization of profits or loss. The rise in the indicator usually means that the holder is more willing to sell it when the price is strong; the fall in the indicator means that both profit and loss are decreasing.

According to the article, the indicator has now re-established itself close to about 1 per cent of the logarithmic scale, falling within the range of what has historically been considered a “accumulation zone”. The analytical logic is that when there is less hold to sell, there will be less pressure on the market.

Many times in history, before the rebound,

The analyst RugaResearch mentioned that since 2016, similar readings have taken place in late 2016, early 2019, March 2020, late 2022 and late 2023. Since then, most markets have entered the visible rehabilitation phase or have expanded further into longer-term booms.

According to the article, the common denominator of such signals is not high moods, but a gradual depletion of the sale. In other words, markets tend to experience a decompression before demand picks up.

MVRV synchronises weak with NUPL

In addition to Sell-Side Risk Ratio, two other common valuation indicators are also mentioned in the article.

  • MVRV is continuing to contract near the realized price.
  • NUPL remains close to the surrender area.

According to the review article, many of the long-term valuation indicators fall into statistically low areas at the same time and are not common in history. This usually means that market pricing has significantly cooled.

However, the article also notes that this does not prove that Bitcoin has found the exact bottom and that there is a possibility of further decline in the follow-up. The central view is that historical accumulation zones are often not accompanied by optimism, but rather occur when markets are cold, differences are growing and sellers' will is declining.